As international leaders prepare to gather next month for the U.S.-hosted G8 summit in Camp David, Arab nations in transition continue to face significant economic challenges. The Deauville Partnership launched in France at the previous G8 summit in May 2011, established a political and economic framework to support the historic transitions launched by the “Arab Spring.” What progress has been made since then? How do G8 members plan to address the deepening economic challenges? What is the role of international financial institutions? What are the prospects for this initiative to evolve into a sustainable partnership between the West and the Arab world that ensures the region’s successful transition?

Panelists will discuss the latest initiatives and highlight areas that are in need of greater support.

On Monday, April 9, 2012 Stimson, George C. Marshall Foundation and Safadi Foundation USA hosted a panel discussion entitled, “Arab Countries in Transition: An Update on International Support One Year after the Deauville Partnership.” The panel was moderated by Mona Yacoubian, Director, Pathways to Progress: Peace, Prosperity, and Change in the Middle East Project at Stimson. Panelists included: Masood Ahmed, Director, Middle East and Central Asia Department, International Monetary Fund; Inger Andersen, Vice-President, Middle East and North Africa, World Bank; and Dr. Peter Howard, Coordinator for the Deauville Partnership, Bureau of Near Eastern Affairs, US Department of State.

In their prepared remarks, the panelists assessed progress made in supporting Arab transitions by the United States and international financial institutions since the launch of the Deauville Partnership at last year’s G8 summit. They also addressed future challenges. The common theme expressed by all the panelists was that the Deauville Partnership presents a unique opportunity to bring all invested stakeholders together, creating a new framework that will strengthen coordination efforts among them.

Masood Ahmed noted the ongoing challenges Arab countries face and emphasized the need to address social and structural issues that limit people’s access to opportunities in the region. He specifically highlighted unemployment issues that initially drove the revolutions. He further stated that while the Deauville Partnership has been useful as a platform for bringing key actors together, the next step is to go from a framework to country-specific deliverables.

Inger Andersen highlighted the “democratization of development,” elevating demands for enhanced governance as critical for successful transitions. Key elements include increased transparency and accountability. Andersen also emphasized the significance of participation in the Deauville Partnership by non-traditional partners such as the Arab Gulf Cooperation Council nations and various regional banks, noting that their presence enhances the Partnership’s representative nature. She underscored the importance of their involvement as an important impetus for encouraging regional economic integration. Andersen also noted the need for developing a strong domestic business environment by providing better access to financing, facilitating small and medium enterprises, and improving education so as to nurture a skilled labor force.

Dr. Peter Howard discussed how the marshaling of international support has changed the United States’ approach to the region, noting ways the United States government is looking to economically support successful transitions. He provided a brief review of the three “pillars” for undertaking Deauville Partnership activities: economic, governance, and trade, noting progress made to date under each pillar.